Rate Hike Speculation Triggers Swings in Stock ETFs

U.S. equities and stock exchange traded funds were experiencing some gyrations between losses and gains Wednesday after strong hiring data fueled speculation of a rate hike next week.

The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.1% higher Wednesday.

The markets swung into positive territory after investors had time to digest the ADP National Employment report, which revealed U.S. private sector added 298,000 jobs in February, compared to economists’ estimated average of 190,000, reports Yashaswini Swamynathan for Reuters.

Investors will still have to watch out for Friday’s nonfarm payrolls report, which includes both private and public jobs and acts as a a clearer barometer of U.S. economic growth.

“Equities are at the crossroads of optimism and concern and are likely to go sideways until we get greater clarity from the Fed and legislative action,”  Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told Reuters.